Entrepreneurship
14 Grade 10 Business Studies questions on Entrepreneurship, with worked marking schemes. 14 questions are available on this topic in full.
Question 1
6 marksSuggest three challenges a young person opening a poultry feed shop at a small market centre is likely to face, and in each case suggest one way of overcoming it.
(6 marks)
Marking scheme
Award 1 mark for each challenge and 1 mark for a matching solution, to a maximum of 6 (3 x 2). Any three pairs: 1. Inadequate start-up capital (1) - start on a small scale and grow from retained profits, or borrow from a sacco, chama or a youth enterprise fund (1). 2. Stiff competition from established shops (1) - offer something they do not, such as delivery to the farm, small pack sizes or free advice on feeding (1). 3. Lack of business management skills (1) - attend short training courses and seek mentorship from an experienced trader (1). 4. Seasonal or unreliable demand (1) - stock related items such as drugs, feeders and day-old chicks to spread the risk (1). 5. Selling on credit and failing to recover the money (1) - limit credit to known customers and keep a record of every debt (1). 6. Poor record keeping and mixing business money with personal money (1) - keep simple daily records and pay oneself a fixed salary (1).
Question 2
1 markWhich one of the following best describes an entrepreneur?
A. A person who lends money to businesses and earns interest on the amount lent
B. A person who spots a business opportunity, gathers the resources needed and bears the risk of running it
C. A person who has worked in a business for many years and knows its routines
D. A person employed to run a business on behalf of the people who own it
(1 mark)
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4 marksOutline four ways in which entrepreneurship contributes to the development of the Kenyan economy.
(4 marks)
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1 markMueni's first batch of yoghurt went sour before she could sell it. She found out what had gone wrong, bought a cooler on hire purchase and produced a second batch which sold out. Which characteristic of an entrepreneur does Mueni mainly show?
A. Persistence after a setback
B. Avoidance of all forms of risk
C. Copying exactly what other producers do
D. Dependence on relatives to run the venture
(1 mark)
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1 markWhile walking home, Achieng' notices that pupils from a large estate walk over three kilometres to the nearest shop selling exercise books. To an entrepreneur, this observation is best described as
A. a trade licence requirement
B. a source of capital
C. a business opportunity
D. a business risk
(1 mark)
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1 markKasaine borrows money and puts up a greenhouse in Kajiado to grow tomatoes. Which one of the following is the business risk that he bears as an entrepreneur?
A. The possibility that tomato prices will collapse at harvest and he makes a loss
B. The cost of the polythene sheet used to cover the greenhouse frame
C. The annual licence fee charged on the venture by the county government
D. The wages he has agreed to pay his workers at the end of each month
(1 mark)
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6 marksExplain three sources from which a Grade 10 learner may obtain a business idea.
(6 marks)
Marking scheme
Award 1 mark for each source identified and 1 mark for the explanation, to a maximum of 6 (3 x 2). Any three of: 1. Problems and unmet needs in the community (1) - for example, noticing that households struggle to get clean drinking water and starting a water vending service (1). 2. Own hobbies, talents and skills (1) - a learner good at repairing phones or plaiting hair can turn that skill into a paying service (1). 3. Existing businesses (1) - studying shops in the market centre and spotting a gap they have left, such as delivery to customers' homes (1). 4. Waste and by-products (1) - collecting discarded plastic bottles or banana fibre and making flower pots or mats from them (1). 5. Mass media and the internet (1) - reading or viewing what is working elsewhere and adapting it to the local area (1). 6. Surveys and talking to people (1) - asking potential customers what goods or services they cannot easily obtain (1). 7. Changes in trends and government policy (1) - the ban on plastic carrier bags created demand for cloth and sisal bags (1).
Question 8
1 markAfter completing school, Kilonzo decides to start his own shoe repair and cleaning business at a market centre instead of waiting for a formal job. His decision is an example of
A. formal employment
B. self-employment created through entrepreneurship
C. apprenticeship
D. casual labour
(1 mark)
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2 marksState the meaning of the term entrepreneurship.
(2 marks)
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1 markWhich one of the following is a challenge commonly faced by a young person starting a small business in Kenya?
A. Receiving too much free training from the county government
B. Difficulty in raising enough start-up capital
C. Having too many suppliers competing to sell to the business
D. Earning excessive profits in the first month of trading
(1 mark)
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4 marksDescribe four characteristics of a successful entrepreneur.
(4 marks)
Marking scheme
Award 1 mark for each characteristic correctly named and briefly described, to a maximum of 4. Any four of: 1. Creative and innovative - comes up with new products or better ways of doing things. 2. A calculated risk taker - is willing to commit money and time to a venture whose outcome is uncertain, after weighing the chances. 3. Persistent - keeps trying after a setback instead of abandoning the business. 4. Self-confident - believes in the idea and can make decisions without waiting to be told. 5. Goal-oriented - sets clear targets and works towards them. 6. Hardworking - puts in long hours, especially in the early stages. 7. Able to spot opportunities - notices unmet needs in the community before others do.
Question 12
2 marksDistinguish between a business idea and a business opportunity.
(2 marks)
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Create a free account to see itQuestion 13
1 markOtieno buys fish at a landing beach on Lake Victoria and sells it in the nearby market in the same state. Wanjala buys the same fish, smokes it and sells it in sealed, labelled packets in Kisumu town at a much higher price. Wanjala's approach mainly shows
A. price fixing by the county government
B. innovation through value addition
C. speculation
D. selling on credit terms
(1 mark)
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4 marksExplain four factors a young person should consider before choosing a business opportunity to invest in.
(4 marks)
Marking scheme
Award 1 mark for each factor correctly explained, to a maximum of 4. Any four of: 1. Amount of capital required - the venture should be one the person can finance from savings, family or a loan that can be repaid. 2. Size and nature of the market - there must be enough customers who are willing and able to buy the good or service. 3. Level of competition - a line already crowded with established traders leaves a newcomer little room to sell. 4. Own skills, training and interest - a person succeeds more easily in work they understand and enjoy doing. 5. Availability of raw materials or stock and reliable suppliers close enough to keep costs down. 6. Legal requirements - the licences, health rules and county regulations that govern the venture. 7. Expected profit weighed against the risk and the effort involved. 8. Location and supporting services such as transport, water, electricity and security.
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